Edun: Federal Government to Clear Pension Arrears by December 31

The Federal Government has pledged to pay the N88 billion allocated for pension arrears in 2024.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this commitment in Abuja yesterday during a protest by hundreds of retirees from the Contributory Pension Scheme (CPS). The retirees gathered at the Federal Ministry of Finance headquarters, expressing frustration over the prolonged delay in pension arrears payments. They blocked the ministry’s main entrance, demanding that the minister address their concerns.

Edun said from the N88 billion budgeted for pension arrears in 2024, N22 billion has already been paid, saying that the balance would be disbursed by year’s end.

He said payments would commence next week.

He attributed the pension backlog to issues within the older pension system and assured them that the federal government is committed to resolving the delay.

“There has been a committee under the Head of Service which has met with the Minister of Budget and myself. We have a plan for dealing with the backlog under the Contributory Pension Scheme,” he stated.

For a long-term solution, Edun disclosed that the government is considering raising funds through the capital market to address the backlog fully. “We’re working on a viable solution using the financial market to take care of the huge backlog under the Contributory Pension Scheme,” he said.

Earlier, the National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS), Sylva Nwaiwu expressed concerns about the lack of responses from the ministry, despite repeated letters.